Oct. 22 (Bloomberg) -- Banks in Georgia, Florida and Colorado were shuttered by regulators and sold as U.S. lenders collapse under the weight of bad loans tied to real estate.
The four closed banks held deposits totaling about $1.89 billion, the Federal Deposit Insurance Corp. said yesterday in statements on its website. The seizures drained $358.8 million from the deposit insurance fund, the FDIC said.
Regulators have shuttered 84 lenders this year and more than 400 since the start of 2007, FDIC data show. Banks are closing under stress from commercial real estate loans, tied to property values that through April fell about 49 percent from the October 2007 peak, Moody’s Investors Service has said. State Bank & Trust Co., owned by Atlanta-based State Bank Financial Corp., picked up two branches with its acquisition of Community Capital Bank of Jonesboro, Georgia.
“Our first order of business is to assure clients that their deposits are safe, sound and readily accessible,” said Michael S. Sims, Atlanta regional president of State Bank, which has acquired failed lenders two weeks in a row. “State Bank is one of the healthiest financial institutions in Georgia,” Sims said in a statement.
State Bank gained about $166 million in deposits and approximately $180 million in assets, with the FDIC sharing in losses on $141 million.
State Bank Financial has purchased failed lenders to grow to more than $2.9 billion in assets after yesterday’s deal, Bloomberg data show. Last week, it acquired Piedmont Community Bank of Gray, Georgia. The firm said it used FDIC-assisted transactions to purchase two lenders in 2010 and six banking units in 2009.
State Bank Shares
State Bank Financial rose 15 cents, or 1.1 percent, to $13.47 yesterday in Nasdaq Stock Market trading. It has declined 7 percent this year, compared with the 9 percent decline of the Russell 2000 Index.
Community Banks of Colorado, the largest of the four shut banks by deposits, was closed by the Federal Reserve and the FDIC was named receiver. Bank Midwest of Kansas City acquired the Greenwood Village-based lender, picking up 40 branches, $1.33 billion in deposits and about $1.38 billion in assets. The FDIC agreed to share losses on $714.2 million.
The Georgia Department of Banking and Finance seized Decatur First Bank, and the FDIC brokered a sale to Fidelity Bank, based in Atlanta. Fidelity obtained more than $179 million in deposits, about $190 million in assets and five bank branches, the agency said. A loss-share agreement with the FDIC covers more than $111 million of the assets.
Old Harbor Bank, based in Clearwater, Florida, was closed by the state’s regulator and sold to 1st United Bancorp, the FDIC said. The lender based in Boca Raton, Florida, acquired seven branches, about $218 million in deposits and more than $200 million in assets. The FDIC said it will share losses on about $155 million.
U.S. bank failures through 2015 will drain $19 billion from the FDIC’s deposit insurance fund, the agency said this month in an update of its reserve ratio projections.
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